Posted on 12/26/2008 5:34:47 PM PST by An Old Man
Edited on 12/26/2008 5:35:48 PM PST by Admin Moderator. [history]
Price-slashing failed to rescue a bleak holiday season for beleaguered retailers, as sales plunged across most categories on shrinking consumer spending, according to new data released Thursday.
Despite a flurry of last-minute shoppers lured by the deep discounts, total retail sales, excluding automobiles, fell over the year-earlier period by 5.5% in November and 8% in December through Christmas Eve, according to MasterCard Inc.'s SpendingPulse unit.
(Excerpt) Read more at online.wsj.com ...
Oh yes.
Add Wannamaker's, Klein's and Strawbridge & Clothier.
Considering we haven’t had a decrease in holiday spending in 50 years, a -8% (before factoring inflation of 4%) is depressionary? Especially when you consider that there are more locations open this year than last year (which means comps—which is what matters to a retailers bottom line) is probably down -12%. If you exclude Walmart remove another 3-5%.
They didn’t (least not in our territory-22 states). Cash deposits were down YoY.
They’ve had 50” LCD TVs for as low as $699 this holiday season already and I’ve seen 32” for ~300.
Considering most retailers bottom line is about 2-5% of sales, an 8% drop would wipe most out. When you factor in store expansions and inflation (of around 4-5%), that is a very, very bad #. I take it you’ve never worked in retail before?
Gift Card sales are down YoY so that doesn’t matter anyway. Internet spending has been flat this year according to estimates. Gift card sales are recorded as sales when they are redeemed—that just means Q1s always have higher revenue than normal. This is not an issue — don’t try to make it one. It’s simple accounting.
It got purchased by Rite-Aid.
Woodward & Lothrop
Raleigh
Garfields
Hechts
Hechingers
Best
Garfields = Garfinkels
Shouldn’t post before coffee. ;-)
I’m thinking Walmart made out just fine. But you’ll not see this mentioned much by the Drive-Bys.
I’d been listening to all this hysteria about Christmas sales being down so and dear Lord you’d think the roof fell in.
Well what the hell did they expect with all the news about mortgages, done by the gubmint and Barney Frank the great Speech Therapist, the stock market, bailouts of every business including Uncle Ned’s car wash...on and on?
Of course us average folk cut down on our Christmas spending. But I’m betting all across the fruited plains most Americans had a nice Christmas day but this year devoid of so much excess of prior years.
We live in a world folks, where a little moderation is the stuff of Chicken Little.
I use that line too. It flummoxes liberals. (Except when I'm buying ammo.) Happy New Year to you.
One of our stops was at Bed, Bath & Beyond. The entrance area of the store was filled with the "As Seen On TV" merchandise. One stand was filled to the brim with the Obama commemorative dishes.
I would've thought, being that he's so loved (end sarcasm) and his election is such a historic event, that they would've been sold out.
So, you’re married to Ann Coulter? :-)
Err—sorry they were purchased by CVS—not Rite Aid.
No problem, I thought it might have been Revco. :-)
Exactly!
We’ll begin hearing tidbits about this or that story being a glimmer of hope in the economy.
We’ll even have the media say that “NOW” the fundamentals of the economy have “become” sound.
Then they’ll start glowing.
They operate under the assumption that most everybody is stupid, powerless, or both. They are right.
I’m afraid to go near the 50BMG at Chimos lest I drool all over it!
Our economy isn’t bad but I still have a feeling Target isn’t getting a lot of its supposed “upscale” buyers. They should have left the mall alone, and maybe someday we will get a Costco, it would be in a better place I think on the south side of the Parks between Lithia and Hyer road where the old quarry used to be.
We had a very nice Christmas and used cash for everything. We also baked cookies and took to the homeless breakfast downtown Christmas morning. That was my favorite part of Christmas this year - just being thankful for what we have and giving a little something to those less fortunate.
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